How to approach lenders to clear debts

S

senni

Registered User
Messages
175
My brother was self employed for the last 10 years, He worked really hard and never remortgaged his house. His mortgage is not in arrears.His business went bust last April but thankfully it owes no one any money, not even the tax man.

But....he had personal loans totalling 50k with AIB that he was funding perfectly up until he went on benefits. He now receives 415.00 per week ( wife and 3 kids ). He pays his mortgage out of same and house bills, he is actively looking for work.

My brother has been so good to my sister and I over the years when we neaded help and it is our turn to help him ( he gave my sister money years ago to help them adopt and he gave me money to buy my first house 11 years ago.

We are going to help him by provding 25k to pay off these loans ( he is paying a small contribution to each but he is getting nowhere, €20 each month to each loan ( total of 4 loan and one cc )

Question... If his debts total 50k ..is it possible for my solicitor to write asking for a final setlement of 50% on these loans as final setlement. He understands he will have a bad ICB but thats not important as he does not want to lend again. Will Aib accept this or would they be happy with him just giving them 20 euros a month for the forseable future. If they are happy what would the best way to proceed with same ? How would we be sure that they are accepting it as final settlement and not part payment ?

Thanks Senni :eek:
 
I think they will bite the hand off of him to get 50% of the total.

You ask them for a written offer to accept 50% as full and final settlement.
 
Is he in negative equity?

If not, Bank may well seek a further charge on the property for any balance outstanding.

mf
 
Full and final settlement is just that full and final. No further comeback. Otherwise all bets are off.

The banks are only too happy to settle for what they can get these days quickly.
 
contact MABS asap, they will do a financial statement for him and send it off on his behalf. if 10 euros is what he can afford then thats as much as he should be paying...you need to act really smart now or will be in serious troubles...to be honest i would not make any offer just yet...talk to an expert before you make decisions...
 
bond-007 said:
Full and final settlement is just that full and final. No further comeback. Otherwise all bets are off.

The banks are only too happy to settle for what they can get these days quickly.
Click to expand...

Yes but that rather assumes that there are no assets that can be attached? And we don't know that to be the case here?

mf
 
Would you be better using the €25k to fund repayments for a couple of years until he gets back on his feet?
 
bond-007 said:
Full and final settlement is just that full and final. No further comeback. Otherwise all bets are off.

The banks are only too happy to settle for what they can get these days quickly.
Click to expand...

No there are not. They are not just writing off everyones debts. As MF1 says, they will look to see what assets the person has and try to place a charge on them. By the sounds of it, he has a house that is not in negative equity. The bank won't just ignore that.
 
Hi Mortgage is €250,000 and I have spoken to a local valuer and he said it would be worth maybe €300,000 at present.

Would they go after his house ?
 
Sunny said:
No there are not. They are not just writing off everyones debts. As MF1 says, they will look to see what assets the person has and try to place a charge on them. By the sounds of it, he has a house that is not in negative equity. The bank won't just ignore that.
Click to expand...


I dont think anyone is saying that banks are writing peoples debts off.
What is being said is that banks are eager to take a partial settlement if possible.
Going after a 'charge' on someones house would be a long and somewhat costly proceedure I would imagine.
The rest of the debt then being written off.
 
well said, banks are certainly not writting off the debts, on contraire, some like BOI can be arrogant, agressive and abusive...they have the reputation of never writting anything off...but really whay would they take a house that is not paid and they are not going to be able to sell?...enter an agreement is their best option...
 
You must log in or register to reply here.
Back
Top